Texas lures out-of-state craft brewery

By Ronnie Crocker, Houston Chronicle

September 27, 2015Updated: September 27, 2015 11:21pm

Photo: Courtesy Photo

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Oskar Blues Brewery says its Austin facility will include a live music venue in addition to the brewery and a taproom open to the public. Shown is the Burning Can festival, which is sponsored by Oskar Blues.

Oskar Blues Brewery says its Austin facility will include a live music venue in addition to the brewery and a taproom open to the public. Shown is the Burning Can festival, which is sponsored by Oskar Blues.

Photo: Courtesy Photo

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Oskar Blues Brewery of Colorado has announced plans to open a brewery in Austin in April. The new facility will produce the full lineup of canned and draft beer.

Oskar Blues Brewery of Colorado has announced plans to open a brewery in Austin in April. The new facility will produce the full lineup of canned and draft beer.

Photo: Courtesy Photo

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Oskar Blues Brewery of Longmont, Colo., makers of Dale's Pale Ale and other beers, announced plans to open a brewery in Austin in April 2016. In Colorado, it also operates a farm where it grows some hops.

Oskar Blues Brewery of Longmont, Colo., makers of Dale's Pale Ale and other beers, announced plans to open a brewery in Austin in April 2016. In Colorado, it also operates a farm where it grows some hops.

Photo: Ronnie Crocker /Houston Chronicle

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Oskar Blues Brewery started at this brewery in Lyons, Colo. Even though it’s outgrown the site, it still has operations there.

Oskar Blues Brewery started at this brewery in Lyons, Colo. Even though it’s outgrown the site, it still has operations there.

Photo: Ronnie Crocker /Houston Chronicle

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Oskar Blues Brewery recently introduced its Oskar Blues IPA, which will be among the beers made in Austin.

Oskar Blues Brewery recently introduced its Oskar Blues IPA, which will be among the beers made in Austin.

Photo: Courtesy Photo

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Oskar Blues Brewery of Colorado will be the first out-of-state craft brewer to establish an outpost in Texas.

Oskar Blues Brewery of Colorado will be the first out-of-state craft brewer to establish an outpost in Texas.

Photo: Courtesy Photo

Texas lures out-of-state craft brewery

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The eastward migration of many craft breweries took a southern detour when Colorado’s Oskar Blues announced that it will open a 30,000-barrel production facility in Austin next spring, making it the first out-of-state craft brewer to establish an outpost in Texas.

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The brewery will feature a taproom open to the public and a stage for live music.

Oskar Blues and a handful of larger crafts in the western United States have been expanding to the East Coast, where they can make beer and get it to markets there more quickly and efficiently. Earlier this year, for example, Sierra Nevada, based in Chico, California, opened a new brewery in North Carolina. Colorado’s New Belgium is in the process of doing the same. Stone Brewing Co., also of California, has announced plans to build in Richmond, Virginia.

Oskar Blues’ North Carolina brewery opened in 2013 and is expected to produce about 90,000 barrels this year, spokesman Chad Melis said. That accounts for nearly half the company’s output.

Melis said the owners picked Austin for a third brewery largely for cultural reasons: “We try to find communities where we like to spend our time.”

Charles Vallhonrat, executive director of the Texas Craft Brewers Guild, said he expects Oskar Blues to bolster the craft beer here while expanding career opportunities in the industry and perhaps helping existing breweries in other ways. For example, he said, with another craft of significant size in Texas, a supplier of grain or some other product might open a warehouse here that cuts costs for other brewers.

“I hope we see more models like this,” Vallhonrat said.

Oskar Blues has leased 50,000 square feet of space at in northern Austin for its Texas operations. The brewery will produce the full lineup of beers, including Dale’s Pale Ale, Ten Fidy imperial stout and the recently introduced Oskar Blues IPA. Capacity can be expanded to 100,000 barrels.

The opening is set for April 20.

“We move pretty quickly,” Melis said.

In Texas, where Oskar Blues beers already are widely distributed by Ben E. Keith Beverages, sales are up 21 percent this year, compared with a 28 percent increase nationwide, he said. Over the past couple of years, Oskar Blues has expanded its sales force in the state to four people, and Melis said it will add more. The beers brewed here will be sold in Texas and perhaps surrounding states.

The Brewers Association last year ranked Oskar Blues No. 24 in size among U.S. craft breweries.

But Melis insisted that the Austin project is not merely a means to grow. He said that with all its projects, Oskar Blues wants to create a place well-connected to its surroundings. In Colorado, it maintains a small brewing system at its original location in Lyons, even though it outgrew the facility long ago. In addition to the main brewery in Longmont, it also runs a brewpub, a bicycle shop and even a farm where it grows hops. It maintains a charitable organization called the CAN’d Aid Foundation.

Saint Arnold founder and owner Brock Wagner said the Austin expansion probably makes good business sense for Oskar Blues. Some breweries that have launched Texas sales have not met expectations, he said, but establishing a place where people can visit, meet the brewers and learn about the beer could give it an edge. He’s interested to see how consumers will regard the brand.

“Will they view it as a local brewery now, or will there be a carpetbagger aspect?” Wagner said. “In my mind, this makes them local.”

Brewers Association chief economist Bart Watson agreed that a local presence and personal connections are good for business, especially with millennial consumers. He cited a Nielsen survey this year that showed that people who visit a brewery are more likely to buy that brand in the future.

And because Texas has been somewhat of a “sleeping giant” that is now rapidly embracing craft beer, Watson said he would expect to see more breweries open satellites in the state.

Chris Troutman, editor and co-founder of the Austin Beer Guide, admitted to some ambivalence. It’s not that he dislikes Oskar Blues’ beer.

“They’ve been one of my favorite Colorado destinations,” he said in an email, “but that’s just it — they’re a Colorado brewery.”

He wondered about the effect on the already thriving local beer community. Travis County has 13 licensed breweries and 14 brewpubs.

“I think consumers will be excited for another taproom and music venue, but I wouldn’t be surprised if some of the breweries, especially ones in that north Austin area where they are planning to open, might be a little hesitant to welcome them with open arms,” Troutman said. “I think that more, better beer in our city will yield more, better beer overall. I’ll just be curious to see how the Oskar Blues guys fit into the community.”